Non-financial support is a vital factor behind the success of today’s young entrepreneurs, a YBI survey of 1,000 entrepreneurs in 21 countries today reveals.
The survey, launched today to mark Global Entrepreneurship Week, shows that although entrepreneurs need money to start up their business, it is the non-financial assistance, such as mentoring and training, that ensures that their business is a success and that they are able to repay their loans.
- Businesses are more successful: 55% of young entrepreneurs agree that their business is more successful as a result of the non-financial support they received.
- Operational challenges are overcome: two thirds of young entrepreneurs can think of a significant operational challenge in their business that they were able to solve as a result of their non-financial support, that reduced costs and increased profit/turnover in their business.
- Loan repayment rates improve: 54% of young entrepreneurs would have struggled to repay their loan over the same time period without non-financial support.
- Access to finance increases: the likelihood of approval for a commercial loan more than doubles when young entrepreneurs have established a track record and benefited from receiving a range of non-financial services.
- Young entrepreneurs feel more confident: 84% of young entrepreneurs feel more confident running their business as a result of the non-financial support they received.
Andrew Devenport, Chief Executive of Youth Business International, said:
“In these worrying economic times, when in many parts of the world the demographic spotlight is on youth, this report provides insights into the motivations and inspirations of young entrepreneurs, their needs, their experiences and their capabilities.”
The survey was in the field between Monday 15 August and Friday 9 September 2011, and a sample of 1,023 young entrepreneurs from 21 countries took part in the survey.